Gold Riding on US Disinflationary Trends, US Retail Sales and Housing Data in Focus

Gold Riding on US Disinflationary Trends, US Retail Sales and Housing Data in Focus

Gold prices mostly edged higher during the week as the dollar weakened following negative US economic data. The labour data showed signs of a slowdown in the jobs market, which prompted speculation of further interest rate hikes. However, the US inflation print released later in the week indicated a moderation in inflation pressures, providing optimism that the Federal Reserve’s rate-hiking campaign may be nearing an end. The recent data also led to a plunge in the dollar index and a decrease in US 10-year treasury yields. While a rate hike in July is still expected, a September hike looks less likely. The focus for the coming week will be on US retail sales and housing sector data.

TIS Staff

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